Honda Atlas company publish its first-quarter financial report of the current fiscal year and in this report, the company mentions a 30% loss in profit.
Honda Atlas is one of the best auto manufacture company in the country but these days the production of products low because of company face loss. Honda maintains its position in the market because of the quality of products and production speed. But this time the production of Honda products is going to slow because the cost of sale is going to high that’s why company increase the price of products but the new prices are not affordable for the consumer and the sales are going to down that badly affects the profit of the company.
According to the report, Honda Atlas mentions that they face a 30% loss in FQ1 and its Rs. 842 million as compared with 1.19 billion in the last year same period. The change in prices of the products is not positive for the company. The overall sale of motorbikes is down by 6.7%, under this period the company sold 291, 038 units and in the same period last year company sold 311, 951 units.
The reason behind the down in sale is the high prices of products but because of the devaluation of money cost of sale is high. During this tenure the expensive are going up company report that the sales and marketing expenses are going up by 9% during this time and spent 524.1 million for the promotional activities of the company note that the operating and financial charges are Rs 169.7 billion in this time period and its 106% higher than the previous year same time. The earning per share of the company down from Rs. 9.63 to Rs. 6.79.
However, all of these high expenses give a tough time for the company because the sales are going to down as compared to the expenses. Most of the auto parts company import from other countries and the duty of the import is very high and devaluation of rupee value affect the purchase of auto parts.
